Wall Street Zen Upgrades CubeSmart (NYSE:CUBE) to Hold

Key Points

• CubeSmart (NYSE:CUBE) has been upgraded from a "sell" rating to a "hold" rating by Wall Street Zen, reflecting a change in investor sentiment.
• Royal Bank of Canada, UBS Group, and Citigroup have all recently decreased their target prices for CubeSmart shares, indicating caution in the market.
• CubeSmart reported $0.65 earnings per share for the last quarter, exceeding consensus estimates, while projecting a fiscal year EPS ranging between 2.540 and 2.600.

Wall Street Zen upgraded shares of CubeSmart (NYSE:CUBE - Free Report) from a sell rating to a hold rating in a report published on Sunday morning.

Other analysts have also recently issued research reports about the stock. Citigroup dropped their target price on shares of CubeSmart from $45.00 to $43.00 and set a "neutral" rating for the company in a research report on Monday, August 25th. UBS Group lowered their target price on shares of CubeSmart from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Tuesday, September 16th. BNP Paribas Exane initiated coverage on shares of CubeSmart in a research note on Tuesday, June 24th. They issued a "neutral" rating and a $46.00 target price for the company. Royal Bank Of Canada reduced their price target on shares of CubeSmart from $48.00 to $47.00 and set an "outperform" rating for the company in a report on Monday, August 4th. Finally, Mizuho upped their price target on shares of CubeSmart from $39.00 to $43.00 and gave the company a "neutral" rating in a report on Wednesday, May 28th. Seven investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $46.00.

CubeSmart Price Performance

NYSE:CUBE traded up $0.06 on Friday, reaching $40.13. The stock had a trading volume of 326,509 shares, compared to its average volume of 1,778,799. The company has a market capitalization of $9.15 billion, a P/E ratio of 24.44, a price-to-earnings-growth ratio of 8.95 and a beta of 0.94. CubeSmart has a 1-year low of $34.24 and a 1-year high of $54.17. The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 1.18. The stock has a fifty day moving average price of $40.48 and a 200-day moving average price of $41.18.

CubeSmart (NYSE:CUBE - Get Free Report) last announced its earnings results on Thursday, July 31st. The real estate investment trust reported $0.65 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.02. CubeSmart had a net margin of 35.44% and a return on equity of 13.12%. The company had revenue of $282.30 million during the quarter, compared to the consensus estimate of $275.71 million. During the same period in the previous year, the firm posted $0.64 earnings per share. The company's revenue was up 6.0% on a year-over-year basis. CubeSmart has set its Q3 2025 guidance at 0.640-0.660 EPS. FY 2025 guidance at 2.540-2.600 EPS. Research analysts forecast that CubeSmart will post 2.64 EPS for the current year.

CubeSmart Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be paid a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date is Wednesday, October 1st. CubeSmart's payout ratio is currently 126.83%.

Institutional Trading of CubeSmart

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of CubeSmart during the second quarter valued at $458,008,000. T. Rowe Price Investment Management Inc. raised its position in CubeSmart by 28.8% during the first quarter. T. Rowe Price Investment Management Inc. now owns 8,664,210 shares of the real estate investment trust's stock valued at $370,049,000 after acquiring an additional 1,937,055 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in CubeSmart by 8.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 6,834,955 shares of the real estate investment trust's stock valued at $291,922,000 after acquiring an additional 543,158 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of CubeSmart by 29.3% in the first quarter. JPMorgan Chase & Co. now owns 5,561,206 shares of the real estate investment trust's stock valued at $237,519,000 after buying an additional 1,261,746 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in shares of CubeSmart by 0.5% during the second quarter. Allspring Global Investments Holdings LLC now owns 5,092,379 shares of the real estate investment trust's stock worth $216,986,000 after purchasing an additional 27,278 shares in the last quarter. Hedge funds and other institutional investors own 97.61% of the company's stock.

CubeSmart Company Profile

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.